Tax Haven Belize

Belize is an English speaking country in South America. Belize has a well developed offshore financial sector. Belize is popular among tourist destination and revenues gained from tourism along with those from the offshore financial center play a major role in the economy and infrastructural development of Belize.

The offshore jurisdiction of Belize also falls in the category of tax havens. Belize offers quality offshore services such offshore banking, the incorporation of offshore companies or International Business Companies IBC, formation of Belize trusts, foundations among other services. As a tax haven Belize is one of the tax free havens of the world. International business companies incorporated in tax haven Belize pay no taxes on income earned from abroad. According to Belize offshore companies legislation income earned aboard can be dividends, profits gained, interests earned, etc. Dividends paid by Belize offshore companies to persons who are not residents of tax haven Belize are not taxed.

Belize offshore companies pay no capital gains tax, estate tax, withholding tax, inheritance tax etc. in tax haven Belize. Belize companies and Belize trusts are exempted from Stamp Duty which would normally be paid on business transactions including transfers carried out on behalf of such entities. One of the characteristics of a tax haven is that it must have zero taxation or very low tax regimes in place. Belize offshore companies are guaranteed to remain tax free business entities as long as they do not carry out business or investment activity in the jurisdiction owns no property in Belize and owns no shares in a Belize Domestic Company or Belize onshore company.

Belize offshore banks pay no taxes in offshore tax haven Belize. The holders of offshore bank accounts are not taxed on the interest accumulated by offshore bank accounts. Belize offshore bank accounts are not subjected to repatriation tax or capital gains tax. As a tax haven Belize provides confidentiality and privacy for its offshore investors and clients. When incorporating a Belize offshore corporation the names and addresses of the shareholders and company directors are not filed with the Registrar therefore this is not made part of public records. Further privacy and confidentiality can be given to the beneficial owners of Belize offshore companies by using nominee shareholders and directors.

Belize offshore corporations can be registered with one shareholder and one director who can be the same person. The directors of Belize offshore companies can be another Belize corporation. The structure of Belize international business companies is set up in a way to provide beneficial owners with a flexible business structure which is easy to manage. The tax haven of Belize has become a safe place to bank because of its offshore banking legislation. In tax haven Belize much emphasis is placed on protecting the privacy of offshore bank clients.

The Belize offshore bank legislation guaranteed confidentiality for bank account holders. All information regarding offshore bank accounts and offshore bank account holders is confidential. The name of offshore bank account holders cannot be disclosed. Information regarding offshore bank account can only be disclosed if a court order has been given out or in cases of criminal investigations. Failure to comply will result in fines and penalties.

As a tax haven Belize does not maintain double tax treaties with any foreign nation. In keeping with the policy of tax havens the financial records and tax information of offshore clients who use the tax haven of Belize will be safe from the tax authorities of their individual governments. Belize has no exchange controls in place. This facilitates the movement of funds from Belize to other countries or trading partners. The absence of exchange controls makes it very easy for offshore companies to engage in global trading. The affairs of Belize offshore companies remain private to them in the tax haven of Belize. The annual financial statement of international business companies incorporated in the tax haven of Belize is according to legislation the concern of the offshore company. International business companies of tax haven Belize are not mandated by law to present its annual accounting records to authorities in Belize. These records are to be kept for benefit of the corporation’s shareholders and directors.

The offshore tax haven of Belize has a very stable economy which is encouraging for investors. Belize is a jurisdiction that can be used for tax planning and reducing tax liabilities. Belize provides quality asset protection since the jurisdiction does not allowing “piercing of the veil” to occur. Belize has a well developed communications systems which allows for the modernization of the ways in which offshore services are provided. There is no need for a client to travel to the tax haven of Belize to set up a trust, offshore corporation or offshore bank account.